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1988 (4) TMI 195 - HC - Customs

Issues:
1. Validity of registration certificate of exporters under Import Export policy for the year 1978-79.
2. Allegations of sub-standard export products leading to deregistration of exporters.
3. Compliance with principles of natural justice in deregistration process.
4. Opportunity for re-registration and entitlement to cash incentives for exports.

Analysis:

The judgment concerns the validity of the registration certificate of exporters under the Import Export policy for the year 1978-79. The petitioners were registered exporters with a certificate valid until 10th October, 1980, unless deregistered for specific reasons. The petitioners exported cast iron pipes to Egypt in 1977, facing complaints of sub-standard quality and deviations from specifications. The Engineering Export Promotion Council issued a show cause notice based on the complaints, leading to the petitioners' deregistration and cancellation of their certificate on 3rd February 1979.

The primary issue revolves around the compliance with principles of natural justice in the deregistration process. The petitioners argued that they were not granted a personal hearing before the deregistration order, alleging a violation of natural justice. However, the court noted that the petitioners were given ample opportunity to make representations, submit documents, and respond to the show cause notice. Although a personal hearing was initially promised but not conducted, the court found the decision justified based on the detailed material before the Council and the nature of the petitioners' explanations. The court emphasized that while a personal hearing is beneficial, it is not mandatory in every case, and the petitioners had a fair chance to present their case before the Registering Authority.

Furthermore, the judgment addressed the petitioners' opportunity for re-registration post-deregistration and their entitlement to cash incentives for exports. The Engineering Export Promotion Council informed the petitioners of the option to apply for re-registration under Rule 272, which they did not pursue. Consequently, the petitioners were deemed ineligible for cash incentives amounting to Rs. 26,182.20 due to their deregistration status. Ultimately, the court dismissed the petition, ruling against the petitioners and imposing costs.

In conclusion, the judgment upholds the deregistration of the exporters based on the available evidence and the compliance with principles of natural justice during the process. The court's decision emphasizes the importance of providing opportunities for representation and submission of relevant documents, even if a promised personal hearing was not conducted. The judgment highlights the significance of procedural fairness in administrative actions concerning registration and deregistration of exporters under the Import Export policy.

 

 

 

 

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